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Quarterly report pursuant to Section 13 or 15(d)

Business Segment Reporting

v3.20.2
Business Segment Reporting
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract] Ìý
Business Segment Reporting Business Segment Reporting
During the periods presented, we reported our financial performance based on the following segments: Land and Resource Management and Water Services and Operations. Our segments provide management with a comprehensive financial view of our key businesses. The segments enable the alignment of strategies and objectives of the Trust and provide a framework for timely and rational allocation of resources within businesses. We eliminate any inter-segment revenues and expenses upon consolidation.

The Land and Resource Management segment encompasses the business of managing approximately 900,000 acres of land and related resources in West Texas owned by the Trust. The revenue streams of this segment consist primarily of royalties from oil and gas, revenues from easements and commercial leases and land and material sales.

The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. The revenue streams of this segment principally consist of revenue generated from sales of sourced and treated water as well as revenue from produced water royalties.

Segment financial results were as follows for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended
June 30,		 Six Months Ended
June 30,
2020 2019 2020 2019
Revenues:
Land and resource management
 $ 32,881Ìý Ìý $ 58,688Ìý Ìý $ 89,539Ìý Ìý $ 219,147Ìý Ìý
Water services and operations
 21,687Ìý Ìý 28,622Ìý Ìý 61,623Ìý Ìý 59,487Ìý Ìý
Total consolidated revenues $ 54,568Ìý Ìý $ 87,310Ìý Ìý $ 151,162Ìý Ìý $ 278,634Ìý Ìý
Net income:
Land and resource management
 $ 18,721Ìý Ìý $ 37,194Ìý Ìý $ 57,839Ìý Ìý $ 160,311Ìý Ìý
Water services and operations
 8,862Ìý Ìý 12,392Ìý Ìý 27,145Ìý Ìý 29,273Ìý Ìý
Total consolidated net income $ 27,583Ìý Ìý $ 49,586Ìý Ìý $ 84,984Ìý Ìý $ 189,584Ìý Ìý
Capital expenditures:
Land and resource management
 $ 33Ìý Ìý $ 881Ìý Ìý $ 121Ìý Ìý $ 1,415Ìý Ìý
Water services and operations
 323Ìý Ìý 12,472Ìý Ìý 3,852Ìý Ìý 21,185Ìý Ìý
Total capital expenditures $ 356Ìý Ìý $ 13,353Ìý Ìý $ 3,973Ìý Ìý $ 22,600Ìý Ìý
Depreciation, depletion and amortization:
Land and resource management
 $ 350Ìý Ìý $ 261Ìý Ìý $ 687Ìý Ìý $ 438Ìý Ìý
Water services and operations
 3,328Ìý Ìý 1,190Ìý Ìý 6,326Ìý Ìý 2,217Ìý Ìý
Total depreciation, depletion and amortization $ 3,678Ìý Ìý $ 1,451Ìý Ìý $ 7,013Ìý Ìý $ 2,655Ìý Ìý
The following table presents total assets and property, plant and equipment, net by segment as of June 30, 2020 and December 31, 2019 (in thousands):
June 30, 2020 December 31, 2019
Assets:
Land and resource management
 $ 432,912Ìý Ìý $ 467,758Ìý Ìý
Water services and operations
 120,688Ìý Ìý 130,418Ìý Ìý
Total consolidated assets $ 553,600Ìý Ìý $ 598,176Ìý Ìý
Property, plant and equipment, net:
Land and resource management
 $ 3,976Ìý Ìý $ 4,359Ìý Ìý
Water services and operations
 81,501Ìý Ìý 83,964Ìý Ìý
Total consolidated property, plant and equipment, net $ 85,477Ìý Ìý $ 88,323Ìý Ìý